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SPDR Gold Shares (GLD) — This ETF made a bear market low on Dec. 31, closing 2013 out at $116 and rallying to a March 14 high above $133. GLD then settled down to form a bottom with a higher low near $120 on June 3.

Since then, the movement in this fund has been purely technical, as it topped at just under $130, and on Thursday, bounced from the conjunction of the 50-day and 200-day moving averages.

In my opinion, since gold has no earnings and pays no dividend, there is only one reason to own it, and that is as a hedge against inflation, geopolitical conflict or tough economic times.

With Ukraine in crisis and Israel invading Gaza, GLD jumped more than $2 on Thursday. A break from the current triangle with resistance at just under $130 could result in a quick move through the highs to about $140.

While allocating some of your portfolio (10% max) to gold may not make you rich, it could offset a portion of a serious decline. Traders should consider options on GLD for a quick move higher. But be prepared to cover when it looks like the geopolitical situation is calming down.